yejiming Hedge Spot with Futures
PREREQUISITE: Load the following skills to execute this recipe:
kraken-spot-execution,kraken-futures-trading,kraken-futures-risk
Protect a spot BTC holding from downside by shorting an equivalent futures position.
CAUTION: This locks in current value but also caps upside. Futures margin requirements apply.
Steps
- Check spot balance:
kraken balance -o json 2>/dev/null - Get spot price:
kraken ticker BTCUSD -o json 2>/dev/null - Get futures price:
kraken futures ticker PF_XBTUSD -o json 2>/dev/null - Check futures margin availability:
kraken futures accounts -o json 2>/dev/null - Calculate matching futures size:
BTC_BAL=$(kraken balance -o json 2>/dev/null | jq -r '.XXBT // .XBT // "0"')andFUT_PRICE=$(kraken futures ticker PF_XBTUSD -o json 2>/dev/null | jq -r '.ticker.last') - Open short futures position (requires human approval):
kraken futures order sell PF_XBTUSD $BTC_BAL --type limit --price $FUT_PRICE -o json 2>/dev/null - Verify the position:
kraken futures positions -o json 2>/dev/null - Enable dead man's switch:
kraken futures cancel-after 3600 -o json 2>/dev/null - Monitor margin:
kraken futures accounts -o json 2>/dev/null - To remove hedge, close futures:
kraken futures order buy PF_XBTUSD $BTC_BAL --reduce-only -o json 2>/dev/null